Funeral Expenses???

[pigpen75]

A week before I filed my dad died and we had the funeral expenses taken directly out of his life insurance benefits before I even got it. My 341 meeting is on monday, and my lawyer tells me the trustee will go after the $8000 for the funeral. I will have the life insurance benefit check which is about $26K and gladley hand it over if need be. I'm just wondering if the lawyer gets the $8000 from the funeral home, then how does the funeral home get paid? Will they come after me later or will I have to eventually add them to the BK? Pls help and thanks.

[Flamingo]

I don't know your full situation nor have the time to review your past postings; I believe your father died without a will; is your mother surviving? Depending on the state in which he resided, when you die intestate the state sets guidelines for the distribution of the estate. It almost always first goes to the surviving spouse. If your mother is living, she is responsible for the payment of the funeral home and burial expenses from the estate. I am assuming your father had an insurance policy naming you only as the beneficiary and that is what is causing the issues - from what I gather from your posting, you had $8,000 directed to the funeral home for expenses and the rest will come to you. If your mother is not living, the estate usually goes to the surviving children. Or was your father's estate the beneficiary of that insurance? If that is the case, the funeral expenses would come directly from that source before any distribution was made to heirs and that $8,000 could not be touched by the Trustee because the estate is the beneficiary. You would only have to worry about the portion of the insurance that you would inherit.

I don't know if you can list a funeral home for your father's burial expenses in your BK if your mother is surviving. You are getting into estate law since that is not your debt but a debt of the estate and your mother if she is surviving or if you have any brothers and sisters. Hopefully there is someone on here either in the funeral business or knows estate law who can maybe help you out somewhat.

[pigpen75]

I don't know your full situation nor have the time to review your past postings; I believe your father died without a will; is your mother surviving? Depending on the state in which he resided, when you die intestate the state sets guidelines for the distribution of the estate. It almost always first goes to the surviving spouse. If your mother is living, she is responsible for the payment of the funeral home and burial expenses from the estate. I am assuming your father had an insurance policy naming you only as the beneficiary and that is what is causing the issues - from what I gather from your posting, you had $8,000 directed to the funeral home for expenses and the rest will come to you. If your mother is not living, the estate usually goes to the surviving children. Or was your father's estate the beneficiary of that insurance? If that is the case, the funeral expenses would come directly from that source before any distribution was made to heirs and that $8,000 could not be touched by the Trustee because the estate is the beneficiary. You would only have to worry about the portion of the insurance that you would inherit.

I don't know if you can list a funeral home for your father's burial expenses in your BK if your mother is surviving. You are getting into estate law since that is not your debt but a debt of the estate and your mother if she is surviving or if you have any brothers and sisters. Hopefully there is someone on here either in the funeral business or knows estate law who can maybe help you out somewhat.

Thanks. My mother and father were divorced. My brother and myself were both beneficiaries and he had no will. So what it sounds like to me is that the funeral home should be able to keep their money. I will see what I can find in Missouri law. Thanks

[AngelinaCatHub]

Flamingo is the sharpest blade here. It would certainly be in the Trustees interest to let this slide. As I understand it, in any Will, the first thing that has to happen is proper funeral expenses and I am sure in any state if he was intestate, the funeral expenses would be exempt. Otherwise tell the Trustee to dig him up and deal with it. Not cool on any Trustee and I doubt after your 341, you would have a problem. Everyone is entitled to proper interment. Even a homeless street person named John Doe, gets a paupers interment and I have always had friends in this business, there is funds for that. Your Dad gave you both an insurance claim. One half of the burial is you brother’s debt. If you have a problem, I would address the Bk Court. But I think the Trustee will let it pass. ‘Hub

[AngelinaCatHub]

OK, I revise after reading this, I would defiantly contest the funeral expense in your 341, or get the check, pay the bill, as “It is a necessary living (dying) expense", and show the deposit and the debit to the Funeral Home. Be prepared to surrender the rest.

It would be B.S. if the Trustee at this time *****es. I see red now and it probably shows. 'Hub

[pigpen75]

The bill is already paid. The funeral home made arangements with the insurance company and it was taken out of my share before the rest was dispursed to my brother and I. My dad was a 20+ year vet of the armed forces and if they can't respect that than that's BS.

[anime-chicka]

My condolences on your loss. As a daughter of a vet as well, I know all too well that it's hard to deal with people who all want a share of the money.

That being said, isn't the insurance money also supposed to be used for taking care of any debt that the deceased estate has? I realize that the insurance is supposed to comfort those who have lost the loved one, but there are always bills that need to be taken care of. I know that even though there was $25k from my father's insurance payout, about $15k of that was used to settle up debts and pay for the funeral expenses.

Personally, I think the Trustee is being heartless.

[pigpen75]

My condolences on your loss. As a daughter of a vet as well, I know all too well that it's hard to deal with people who all want a share of the money.

That being said, isn't the insurance money also supposed to be used for taking care of any debt that the deceased estate has? I realize that the insurance is supposed to comfort those who have lost the loved one, but there are always bills that need to be taken care of. I know that even though there was $25k from my father's insurance payout, about $15k of that was used to settle up debts and pay for the funeral expenses.

Personally, I think the Trustee is being heartless.

Well, we don't know anything for sure until this Monday. So please pray and agree that the trustee will not touch my father's burial fund. The Honor Guard from FT. Leonard Wood did an amazing job. Thanks and God bless.

[CindyLou]

The 8000 is now between the trustee and the funeral home. You should list the funeral home on your BK just in case, but I see the only issue here is that they could still go after your brother for the balance once the money is taken back from the funeral home.

I am also sorry for your loss.